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Let's say there is a company that benefits from the protection of state and local governmental agencies. And that company funds its budgets through proper taxes. The product that the company create is one that every person, from 5 to 18 years old, who lives within its service territory, is required to purchase. this protected company can open a facility anywhere it wants. however, competing companies, because they are denied the right to finance their activities through taxation, must ordinarily charge higher prices than the protected company charges. In addition, competing companies must have licenses/permits to operate, must be audited by state agencies, must follow required standards and must market their products to attract customers. Customers of these competing companies must not only pay for the higher prices but also pay property taxes to fund the protected company.
a. is the protected company a monopolist? Can you name such a protected company?
b. what should consumers do to minimize, or even to break up, the benefits enjoyed by the protected company?
Read the "Production and Cost Analysis in the Fast-Food Industry," Case for Analysis located below. Identify how the Law of Diminishing Marginal Returns set in for the production process, and how management responded to this situation.
q.university of richmond professor erik craft analyzed the states pricing of vanity plates. he found that in california
if you deposit $1000 now, $3000 four years from now follows by five quartely deposite decreasing by $500 per quarter at an interest rate of 12% per years compounded quartely. how much will you have in your account 10 years from now?
What kind of economies come from reductions in cost due to adoption of technology that has high fixed costs, but lower variable costs?
The owner of a business is considering investing $55,000 in new equipment. She estimates that the net cash flow will be $5,000 during the first year and will increase by $2,500 per year each year thereafter. Determine the annual capital recovery cost..
Explain what the tax multiplier is and why it is less than the expenditure multiplier. Explain, in your own words, how an increase in investment spending generates a multiplied effect on GDP.
Assume that a police officer is conducting a valid stop and frisk for weapons. If evidence of drug possession inadvertently becomes known to the officer, probable cause for an arrest arises.
As parts of a project to monitor traffic in town, the governor secured a grant for $3.5 million that paid for 200 traffic cameras. If the 200 cameras are equal to 20 police agents, each having a salary of $65,000 per year, what is the rate of return ..
1. what does gross domestic product gdp tell us? how did gdp change from 2008? what caused these changes? what is real
Innovation activities influence strategic planning and sales forecasting. Is there a single best generalized innovation strategy that will optimize strategic planning and sales forecasting? If yes, explain the strategy. If no, explain why not
The market demand functions for corn is Qd = 15 – 2P, and the supply function of corn is Qs = 5P – 2.5. Suppose the government gives corn farmers a $0.70 subsidy per bushel of corn. What will be the effects on aggregate surplus, consumer surplus, and..
The elasticity of resource demand will be greater the:
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